Kuwait-based logistics provider, Agility had agreed to pay US$95 million in cash to settle a civil lawsuit accusing it of defrauding the U.S. military on food supply contracts.
In addition to the US$95 million Agility will pay to settle the civil case, the company and the U.S. government have agreed to mutual releases of all outstanding contract claims related to the
food-supply contracts, Agility said in a statement.
The deal resolves all legal issues related to the contracts for Agility staff, directors, officers and affiliates, it said, adding the terms of the settlement were subject to final court approval.
The pariah period should end soon
The settlement will allow Agility to once again pursue new U.S. government contracts, the statement said.
At one stage, the U.S. military contracts accounted for around 40% of Agility's revenues and also provided it with a 30% margin, analysts estimated at the time.
First filed in November 2009, the criminal proceedings led Agility to be replaced as the main Middle East supplier to U.S. forces and the firm was barred from bidding for any new U.S. contracts while the court case was pending.
Nol van Fenema